E-Paper
HP’s legacy resolution scheme helps recover ₹318-cr arrears
Introduced last year, the government’s scheme is aimed at settling the pending legacy cases of all subsumed laws besides recovering the arrears
The Himachal Pradesh government’s legacy cases resolution scheme is helping the pandemic-hit economy of the hill state as the excise and taxation department has already recovered disputed arrears amounting to ₹318 crore under the scheme till March 16.
This is up from ₹1 crore that was collected as arrears in July last year.
The department now hopes to make a total recovery of ₹362 crore by March 21, 2021.
The total expected recovery under the scheme is equal to the one-month GST (goods and services tax) collection of the state. The highest collection under the scheme is in March 2021.
Last year, arrears worth ₹73 crore were recovered from July to December, while this year ₹289 crore has already been recovered.
The maximum recovery of ₹102.99 crore was made in Baddi-Barotiwala-Nalagarh (BBN) revenue district followed by ₹98.06 crore in Solan and ₹19.94 crore in Kinnaur districts.
Scheme saved time, litigation cost
Introduced last year, the scheme is aimed at settling the pending legacy cases of all subsumed laws and recovering the arrears. Many of the cases were under dispute for over a decade and involved huge litigation cost both for the state and taxpayers.
Under the scheme, the settlement fee in lieu of interest and penalty is limited to 10% over and above the principal amount.
In January 2021, the scheme was extended up to March 21, 2021.
Settling of legacy issues under the scheme has saved the time and litigation cost of the department and tax officials can now focus on GST collections of the state.
Generating awareness, coordination helped
“The success of the scheme is due to strategising of focus arrears; awareness creation among taxpayers about the benefit under the scheme; and constant coordination between the headquarters and district authorities,” says excise and taxation commissioner Rohan Chand Thakur.
Besides, interactions with taxpayers; publicising the smooth settlement process under the scheme; training of staff; and coordination with external agencies such as banks and courts have helped in the scheme’s success.
“The department has worked hard effectively as a team to settle the cases and recover the arrears in a time-bound manner,” says Thakur.
MONTH-WISE RECOVERY OF ARREARS
July 2020: ₹1 crore
August: ₹2 crore
September: ₹5 crore
October: ₹17 crore
November: ₹3 crore
December: ₹45 crore
January 2021: ₹104 crore
February: ₹4 crore
March (till 16): ₹181 crore
